Indian online travel booking company Yatra has terminated a pending merger agreement with Atlanta-based software company Ebix and has filed a lawsuit over "significant damages" for alleged violation of the terms of the contract.
Last July in Ebix announced its plan to acquire Yatra, giving the Indian company an enterprise value of $ 337.8 million to strengthen its position in the Indian hotel and airline ticket market.
Ebix late Friday said there had been a termination notice. In his complaint, Yatra said that she "would hold Ebix accountable for violations of its warranties, warranties, and agreements in the merger agreement and an additional renewal agreement, and demand substantial damages," a statement said.
"As stated in the complaint, the behavior of Ebix violated essential provisions of the agreements and frustrated Yatra's Opportunity to complete the transaction and take advantage of Yatra's bargain for Yatra shareholders, ”he added.
Ebix did not respond to a request for comment.
Yatra also released its financial data on Friday, saying it had taken several cost-saving measures, including halving management salaries across the company to tackle the coronavirus pandemic that has brought most travel and hospitality activities to a halt worldwide.
The company announced on June 4 that it had a total of $ 32.5 million of available liquidity and the current monthly operating cost for ongoing payments was approximately $ 1.2 million.
Yatra, which went public in 2016 after a reverse merger with the listed company Terrapin 3 Acquisition Corporation, has India's network18, Reliance Capital, Macquarie Group and Rotation Capital among its shareholders. Real-time bookings are processed for more than 108,000 hotels and private stays in India and over 1.5 million hotels around the world.